Richard Sloan from the University of Michigan was first to document what is referred to as the "accrual anomaly". His 1996 paper found that shares of companies with small or negative accruals vastly outperform (+10%) those of companies with large ones.
Finish Line's Sloan Ratio for the quarter that ended in Feb. 2018 was -1.68%.
As of Feb. 2018, Finish Line has a Sloan Ratio of -1.68%, indicating the company is in the safe zone and there is no funny business with accruals.
Finish Line Sloan Ratio % Historical Data
The historical data trend for Finish Line's Sloan Ratio % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Competitive Comparison of Finish Line's Sloan Ratio %
For the Specialty Retail subindustry, Finish Line's Sloan Ratio %, along with its competitors' market caps and Sloan Ratio % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Finish Line's Sloan Ratio % Distribution in the Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Finish Line's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Finish Line's Sloan Ratio % falls into.
Finish Line Sloan Ratio % Calculation
Earnings contain a lot of non cash earnings which is called accruals. The Sloan ratio is a way to identify firms with low non-cash or accrual-derived earnings relative to their cash flow.
Finish Line's Sloan Ratio for the fiscal year that ended in Feb. 2018 is calculated as
Finish Line's Net Income for the trailing twelve months (TTM) ended in Feb. 2018 was 8.14 (May. 2017 ) + 2.843 (Aug. 2017 ) + -12.914 (Nov. 2017 ) + 16.341 (Feb. 2018 ) = $14 Mil.
Finish Line's Cash Flow from Operations for the trailing twelve months (TTM) ended in Feb. 2018 was 9.18 (May. 2017 ) + 56.158 (Aug. 2017 ) + -19.906 (Nov. 2017 ) + 32.307 (Feb. 2018 ) = $78 Mil.
Finish Line's Cash Flow from Investing for the trailing twelve months (TTM) ended in Feb. 2018 was -14.066 (May. 2017 ) + -13.096 (Aug. 2017 ) + -13.145 (Nov. 2017 ) + -11.649 (Feb. 2018 ) = $-52 Mil.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Finish Line (NAS:FINL) Sloan Ratio % Explanation
A former University of Michigan researcher, Richard Sloan's 1996 paper found that shares of companies with small or negative accruals vastly outperform (+10%) those of companies with large ones. In fact, for the 40-year period between 1962 and 2001, buying the lowest accrual companies and shorting the highest accrual companies resulted in an average annual compounded return of 18%, more than double the S&P 500's 7.4% annual return over the same period.
If the Sloan Ratio is between -10% and 10%, the company is in the safe zone and there is no funny business with accruals.
If the Sloan Ratio is less than between -25% and -10% on the negative side, and between 10% and 25% on the positive side, this is a warning stage of accrual build up.
If the Sloan Ratio is less than -25% or greater than 25%, and this ratio is consistent over several quarters or even years, be careful. Earnings are highly likely to be made up of accruals.
As of Feb. 2018, Finish Line has a Sloan Ratio of -1.68%, indicating the company is in the safe zone and there is no funny business with accruals.
Finish Line Sloan Ratio % Related Terms
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Finish Line is a United States-based specialty retailer that is principally engaged in the sale of athletic footwear, apparel, and accessories, with presence in the United States, Puerto Rico, and the District of Columbia. The company operates business through physical stores and digital formats under two brands: Finish Line and JackRabbit. Finish Line is a mall-based retailer offering brand names including Nike, Brand Jordan, Adidas, Under Armour, and Puma. JackRabbit is a lifestyle community-based retailer offering brand names, such as Brooks, Asics, Nike, Saucony, New Balance, and others. The company also operates unbranded stores at Macy's, without Finish Line signage. The company generates the majority of its total net sales from the Finish Line division.
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